Solar power purchase agreement prices stabilized over the past quarter, after several months of rising costs, according to data from the energy marketplace at LevelTen Energy.

The average cost for North American solar PPAs fell 1.4% during the first quarter of 2024, while wind PPA prices rose 2.4%, according to LevelTen Energy. Wind PPAs are up 20.3% year over year, while solar PPAs have increased 4.9% since early 2023.

LevelTen Energy does not expect solar PPA prices to continue declining this year. High interest rates have adversely impacted the market and the Federal Reserve’s decision to postpone rate cuts this year will likely put upward pressure on PPA prices, said Samuel Mumford, an analyst at LevelTen Energy.